Addverb, supported by Ambani, is aiming to raise $100 million to enhance its robotics initiatives in India.

      TL;DR Addverb Technologies, supported by Ambani, is looking to raise over $100 million for the creation of humanoid and quadruped robots, along with AI training systems. The Indian firm is not in the global top 30 and has yet to show a net profit, with projected revenue of $136 million this year.

      Addverb Technologies, a robotics startup owned by Mukesh Ambani's Reliance Industries, aims to secure more than $100 million to develop humanoid and quadruped robots and the AI systems needed for their training. CEO Sangeet Kumar told Bloomberg that this fundraising marks the company's first significant effort since Reliance's $132 million investment in 2021.

      Currently, the company produces robots for sorting, material handling, and factory automation for logistics companies, warehouses, and electronics manufacturers. It operates in over two dozen countries, with half of its revenue stemming from international markets.

      The Goal

      Kumar expressed the company's ambition to reach the top 10 in the next five years and the top five within a decade. Addverb estimates it is currently just outside the global top 30 in terms of robotics market share based on revenue.

      The gap is substantial. Competitors above them include Unitree Robotics, which is gearing up for a $7 billion IPO, Tesla’s Optimus program, and established Japanese and European industrial robotics companies with decades of manufacturing experience.

      Purpose of the Funding

      The raised $100 million will be used for the development of humanoid and quadruped robots, data collection, and AI training systems. Addverb also plans to introduce proprietary lidar sensors following over two years of development to reduce reliance on imported parts.

      This move toward proprietary technology is strategic, as Chinese competitors benefit from government subsidies and a robust manufacturing supply chain that Indian companies cannot currently match. Addverb is betting that vertical integration and domestic intellectual property can mitigate the cost disadvantage.

      Financial Overview

      The projected revenue for the current fiscal year is 13 billion rupees ($136 million), supported by an order book of around $200 million. Although the company reported losses during its international expansion, it anticipates returning to adjusted profitability by the fiscal year ending in March 2027, with net profit expected the following year.

      Kumar mentioned that an IPO is a potential option for scaling, but there are no immediate plans for it. “We would likely consider an IPO when our revenue exceeds 40 billion to 50 billion rupees,” he said, estimating that this milestone could be achieved within two years at the current growth pace.

      Background

      Founded in 2016 by four engineers formerly with Asian Paints, India’s largest paint company, Addverb’s asset-heavy model initially struggled to attract venture capital, though an investor from Asian Paints provided early backing.

      Clients now include Lenskart, Hindustan Unilever, and Reliance, with the company employing nearly 1,100 individuals. Reliance maintains a controlling stake, while the founders and employees own roughly 20%.

      Concerns

      Addverb has yet to reveal its current valuation or the specifics of the $100 million fundraising effort. The $136 million revenue forecast and the $200 million order book figures are company estimates and not independently verified.

      The humanoid robot market Addverb is entering is competitive and requires significant capital investment. It remains uncertain whether an Indian startup can compete with the cost structures of Chinese firms, the manufacturing precision of Japanese companies, and the brand and capital advantages of Tesla. The company’s current ranking outside the top 30 indicates it needs to grow approximately fivefold to achieve even the lower end of its five-year target, which is an ambitious goal for a company that has not yet reported a net profit.